Reports say world’s top producer of condoms has raised prices, blaming Iran war and other logistics in the supply chains.
The Malaysian company Karex, which produces about five billion condoms a year, said it was raising prices by 30 percent because of higher raw material prices and global shipping disruptions.
The de facto closure of the Strait of Hormuz has led to a surge in the price of oil and gas, disrupting supply chains and driving up costs for a wide range of materials that companies like Karex depends on, including nitrile and synthetic rubber, packaging materials, silicone oil and aluminum foil.
“Some raw material prices have increased by 100 percent. We have no choice but to make adjustments now,” Goh Miah Kiat, the chief executive of Karex, said in an interview with The New York Times on Thursday.
The company says that it makes about a fifth of the world’s condoms and uses more than a hundred chemicals and raw materials in its production. If the war persists, Mr. Goh said, a shortage of even a single item could ripple through its factories and bring production to a halt.
“There will be jobs that will be at stake, ” Mr. Goh warned.
Karex supplies some of the world’s best-known contraceptive brands, including Durex and Trojan.
The company employs around 3,000 people in its factories in Malaysia and Thailand, and sourceing materials from countries across Asia and Europe.
It sells its One brand of condoms for an average retail price of 9 ringgit for a pack of three, or over $2, in the Malaysian market.
—Source: The New York Times.
